Latrobe Magnesium raises $8.5M for growth
- Latrobe Magnesium secured firm commitments to raise $8.5 million in new equity capital through a placement and entitlement offer.
- The equity raise dilutes existing equity by issuing new shares at $0.015 per share, representing a 6.8% discount to the five-day volume-weighted average price.
- Capital raised will fund final works at the Latrobe Valley Demonstration Plant, a 2026 production campaign, and a US plant study.
Latrobe Magnesium (ASX:LMG) secured firm commitments to raise $8.5 million in new equity capital to advance its magnesium production facilities.
The capital raise combines a $5.1 million in institutional placement and a fully underwritten $3.4 million non-renounceable entitlement offer.
"The equity funds raised allow LMG to pursue its growth agenda in a disciplined and focused way," said Latrobe Magnesium incoming CEO Robert Stein.
The transaction involves issuing approximately 339 million new shares at $0.015 per share, with company directors and management contributing $280,000 to the placement subject to shareholder approval.
Latrobe Magnesium stated that the raised capital will support final structural works, commissioning, a 50 kilotonnes per annum US plant study, and general working capital.
Following the announcement, the Latrobe Magnesium share price was down at $0.016.
The company develops low-emission extraction technology to produce magnesium metal from industrial fly ash waste deposits.
